Insurance and Reinsurance

Changes in reserve requirements

The National Insurance Superintendence (SSN) has amended, through Resolution 33.526, the reserves requirements for litigation in the field of civil liabilities (RC). The amendments relate to valuation criteria to constitute RC reserves.


In that respect, in mediations for determined and undetermined amounts, the reserves will be equal to the average of payments made for cases closed during the previous three years, modified by a coefficient that takes into consideration the duration of the mediations.

Regarding General RC lawsuits, a scale has been included, and to calculate the reserves it is taken into consideration the type of lawsuit and the amount of the claim. For Malpractice RC lawsuits, the 30% of the amount claimed will no longer be reserved but, depending on the amount claimed, the reserve requirement will be segmented into declining tracks: the higher the amount of the claim, the lower the applicable percentage, subject to minimum percentage requirements.

All points to the fact that, in general,the level of reserves will decrease, which will imply a relief for RC operators, in particular with respect to Malpractice RC.



For further information on this topic please contact Martín G. Argañaraz Luque